Protests spread across Iraq as markets shut over new tariffs

Shafaq News- Baghdad/ Basra

Protests and market shutdowns spread across multiple Iraqi provinces on Sunday as traders and food distributors pushed back against new government measures that they argue are squeezing incomes and disrupting livelihoods.

In Baghdad, dozens of traders gathered outside the General Customs Authority headquarters on Al-Nidhal Street to protest the newly imposed customs tariff that has sharply increased import costs, with markets across the capital shuttered. “The new tariff has directly raised the cost of basic goods and slowed sales,” trader Salem Mohammed told Shafaq News, warning that continued implementation could lead to widespread market stagnation and further shop closures.

The protests later spread south to Basra, where a broad shutdown hit Al-Ashar market, one of the province’s main commercial hubs. Higher customs fees had caused goods to pile up at Umm Qasr port, delaying supply chains and amplifying financial pressure on importers, which “inflicted heavy losses on traders and disrupted the flow of goods into local markets,” protest representative Alaa Ahmed told our agency.

Across all provinces where demonstrations were held, protesters called on authorities to review the measures and open dialogue to prevent further escalation. Still, the government has yet to announce any plans to roll back or suspend the tariff measures.

Under Cabinet Decision No. 957 of 2025, the government elected to raise customs tariffs on imported goods as part of efforts to boost non-oil revenues. The decision broadened duties on a wide range of products and tightened enforcement at border crossings, prompting the initial eruption of protests in Baghdad.

Read more: Delayed reform or fiscal shock? Iraq’s tax measures test state capacity